Supply Chain Expense as a Percentage of Total Revenue

Benchmarking Report

Supply Chain Expense as a Percentage of Total Revenue

This PDF report includes benchmarking data (in a visual, chart-based format), an comprehensive KPI definition, characteristics of high performers and technical details on measuring Supply Chain Expense as a Percentage of Total Revenue. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.


What is Supply Chain Expense as a Percentage of Total Revenue?

The expense incurred through all supply chain processes and procedures (i.e., all costs related to distribution, logistics, procurement, materials management, etc.) divided by the total revenue generated by the company over the same period of time, as a percentage.

Why should Supply Chain Expense as a Percentage of Total Revenue be measured?

Supply Chain Expense as a Percentage of Total Revenue measures the expense incurred through all supply chain processes and procedures (i.e., all costs related to distribution, logistics, procurement, materials management, etc.) in relation to the total revenue generated by the company over the same period of time. A relatively high value for this metric is typically related to a few common factors, including highly manual (i.e., error and rework prone) supply chain processes and procedures (e.g., distribution, logistics, procurement, materials management, order management, etc. processes that are almost entirely managed through manual labor), overstaffing of one or all supply chain-related departments, general inefficiencies within supply chain processes (e.g., inaccurate demand forecasting methods, inefficient customer order documentation tracking, sub-par procurement policies, poor inventory management, etc.), and sub-par supply chain employee training and performance. While companies typically seek to streamline operations and employee positions to reduce expenses in their supply chain departments, great care should be taken when doing so as too many layoffs can have a negative impact on company morale and make it difficult to provide customers the products they ordered in a timely fashion.


Download a Sample Supply Chain Expense as a Percentage of Total Revenue

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